INSIDE AFRICA Now is the time to invest in Africa 07 July 2014 BRIEFS Africa • China changes approach to Africa by co-financing a fund worth $2bn over 10 years with the African Contents Development Bank (AfDB) IN-DEPTH: • Africa must have coherent approach to trade negotiations Angola economy: Non-oil tax reforms passed....................... 2 Angola African smallholders’ uphill task............................................ 2 • Annual growth in Angola tourism is estimated to exceed 7% over next 10 years. At present it contributes SOVEREIGN RATINGS.................................................................... 3 only 3.4% to GDP, less than half the African average of 8 .5% African Development Bank................................................................ 4 • Angola is developing a $7bn project for its Luanda waterfront, the Ilha, and is seeking to attract overseas hotel investors INVESTMENTS...................................................... 7 Cameroon • Cameroon, Chad agree to build 700km railway link BANKING • Cameroon banks $13.5 mln in Chad oil transit fees BANKS..................................................................... 8 after rake hike MARKETS................................................................ 10 Ghana TECH......................................................................... 12 • Gold Fields Ghana will invest over $180m into its M&A........................................................................... 14 mining operations in Tarkwa and Damang • Subah, SA firm eye $40m foreign call data contract • Stanbic Bank Ghana Launch Diaspora Mortgage in ENERGY............................................................... 14 London Kenya MINING................................................................ 16 • World Bank cuts Kenya growth forecast for 2014 • French giant Lafarge loses battle for Portland Cement OIL & GAS............................................................ 19 boardroom Mali INFRASTRUCTURE............................................ 21 • Canadian B2Gold Corp will buy Papillon Resources for $S70m to gain its Fekola gold project in Mali TELECOM.............................................................. 23 Mozambique • Sasol, Eni to undertake gas-to-liquids plant study in Mozambique RETAIL................................................................... 24 Nigeria • Nigeria, Portugal to Strengthen Trade Ties 26 AGRIBUSINESS.................................................... • FBN Insurance to Launch Takeover Bid for Oasis • Nigeria sells 134.5 bln naira in T.bills at mixed yields MARKETS INDICATORS.................................. 29 Togo • Togo Gets $12.5 Million Islamic Development Bank UPCOMING EVENTS.......................................... 30. Loan for Water Zimbabwe • FBC draws down $20m from Afreximbank • Qatar Airways is set to expand its African presence and introduce flights to Zimbabwe www.eaglestone.eu Inside Africa 07 July 2014 In-depth: Angola economy: Quick View - Non-oil tax reforms passed The Angolan parliament has passed long-awaited non-oil tax reforms. In late June the Angolan parliament approved a package of draft tax codes, including the general tax code, tax procedure code, tax collection enforcement code, industry tax and income tax. The government has been working to reform its outdated and underperforming non-oil tax regime for some years, and in 2010 launched the Projecto Executivo para a Reforma Tributária (PERT) to lead the process. The aim was to modernise and simplify legislation that dates back to the 1950s, when Angola was a Portuguese colony, as well as to help boost Angola's non-oil tax revenue and thus diversify its economy away from its current dependence on hydrocarbons. However, although PERT stated at the outset that it was committed to transparency, many feel that the process has been opaque, with few documents shared and the PERT website rarely updated. A Norwegian think-tank, CMI-which has been studying the reform process alongside the Centro de Estudos e Investigação Científica at the Catholic University of Angola-has been critical of PERT's lack of transparency, saying that the reforms do go far enough in terms of simplification and modernisation. The IMF has also expressed disappointment at how long it has taken to get the new codes into parliament. To date, very few details about the new codes have been shared publicly, an issue also raised by opposition parties, some of whom voted against the legislation in parliament, claiming that they had not had enough time to study the contents and make an informed decision. However, now that the codes have been passed by parliament they should be published in the national gazette soon, after which they will then become law.(Economist Intelligence Unit) African smallholders’ uphill task Launching a business can be hard work, especially in Africa, where weak governance systems and inconsistent access to critical resources impede success. For Africa’s farmers, the challenges are particularly pronounced. Given the vast economic and social benefits of a dynamic and modern agricultural sector, providing farmers with the incentives, investments and regulations that they need to succeed should become a top priority. The recent boom in Africa’s telecommunications sector, which has revolutionised entire industries, not to mention people’s lifestyles, demonstrates just how effective such an approach can be. There are more than a 500-million mobile connections on the continent today; indeed, in many respects, Africa leads the world in mobile growth and innovation. Why has Africa been unable to replicate that growth in the agricultural sector? Why, instead of bumper crops, does Africa have an annual food-import bill of $35bn? According to the Africa Progress Panel’s latest annual report (Grain, Fish, Money — Financing Africa’s Green and Blue Revolutions), the problem is straightforward: the odds are stacked against Africa’s farmers. This is particularly true for smallholder farmers, most of whom are women. These farmers typically lack reliable irrigation systems and quality inputs such as seeds and soil supplements. Moreover, they rarely earn enough to invest in the needed machinery and cannot access credit. As if that were not enough, farmers asre facing increasingly volatile climate conditions that increase the likelihood that their crops will fail. Maize yields, for example, are set to decline by a quarter over the course of the 21st century. In addition, when the crops are ready, farmers face major obstacles, including inadequate rural road systems and a lack of cold-storage facilities, in delivering them to the market. Despite these risks, Africa’s smallholders remain as efficient as their larger counterparts. Yet, instead of supporting farmers, African governments have erected even more obstacles, including excessive taxation, insufficient investment and coercive policies. Africa’s farmers need an environment that allows them to overcome the challenges they face. In such a context, the continent’s agricultural sector could unleash a revolution akin to that fuelled by the communications industry. The good news is that both the private and public sectors — motivated by soaring demand for food, especially in Africa’s rapidly growing cities, and rising global food prices — seem ready to propel this shift. Private firms have begun to channel investment towards Africa’s agricultural sector, including through initiatives like Grow Africa, which facilitates co-operation between governments and more than a hundred local, regional and international companies. Over the past two years, these firms have pledged more than $7.2bn in agricultural investment. For their part, African governments and development partners, recognising the central role agriculture can play in their economic development agendas, have begun to reverse a three-decade decline in public investment in agriculture. In fact, agriculture has the potential to reduce poverty twice as fast as any other sector. The impact of such efforts is already becoming apparent. From Ghana to Rwanda, high levels of agricultural investment are fuelling economic growth in rural areas, thereby boosting job creation and reducing poverty and hunger. But these gains remain fragile. To sustain them, African governments must recommit to the African Union’s (AU’s) Maputo Declaration on Agriculture and Food Security, which includes a pledge to channel at least 10% of their budgets towards agricultural investment. Further, they must provide farmers with the infrastructure, energy supplies and supportive policies. The communications sector also has a key role to play. Mobile technology has begun to transform Africa’s agricultural industry by providing farmers with valuable information including market prices, input support through e-vouchers and www.eaglestone.eu 2 Inside Africa 07 July 2014 even access to credit. Many of these services are more accessible to African smallholders than they are to their American or European counterparts. Finally, private sector actors, farmers’ organisations and civil society groups must co-operate to advance agricultural development. For example, the Alliance for a Green Revolution in Africa supplies high-quality seeds, many of which are drought-resistant, to millions of smallholder farmers. The AU has declared 2014 the Year of Agriculture and Food Security in Africa. With broad action on policy, investment, and technology, Africa’s farmers can double their productivity within five years. It is time to give
Details
-
File Typepdf
-
Upload Time-
-
Content LanguagesEnglish
-
Upload UserAnonymous/Not logged-in
-
File Pages32 Page
-
File Size-